Your examination of Sullivan Company's records provides the following information for the December 31, year end adjustments: Bad debts are to be at 2% sales. Sales made on credit totaled $25,000 for the year. Salaries at year end that have accumulated but have not been paid total $1,400. Annual straight line depreciation for the company's equipment is based on a cost of $30,000, an estimated life of 8 years, and an estimated residual value of $2,000. Prepaid insurance in the amount of $800 has expired. Interest that has been earned but not collected totals $500. The company has satisfied performance obligations entitling it to rent in the amount of $1,000. Interest on a note payable that has accumulated but has not been paid totals $600. The income tax rate is 30% on current income and is payable in the first quarter of the next year. The pretax income before the preceding adjusting entries is $6,800. Prepare the adjusting entries to record the preceding information